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Does adult training benefit Canadian workers?

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  • Ci, Wen
  • Galdo, José
  • Voia, Marcel
  • Worswick, Christopher

Abstract

Using longitudinal data for Canada, the probability of participating in employer supported course enrollment for mid career workers and the wage impacts of those adult educational investments are analyzed. Probability of participation in employer supported course enrollment is increasing with age, job tenure and education, and is lower for visible minority workers. Using a parametric difference-in-differences model to minimize the effects of selection into training, we find strong positive effects of employer supported course enrollment on wage changes over time. The estimated effect ranges from 6.8 to 7.7 percent wage growth for men and 7.5 to 9.3 percent wage growth for women. When the linear specification of the outcome equation is relaxed and an empirical common support is implemented through semiparametric difference-in-differences matching methods, the average treatment effect on the treated estimates from the log wage change models were smaller in magnitude than the corresponding parametric estimates but were typically still statistically significant and in the range of 4.2 to 7.6 percent for men and 7.6 to 7.1 percent for women. An analysis of respondents’ health outcomes shows no clear relationship with participation in employer supported course enrollment.

Suggested Citation

  • Ci, Wen & Galdo, José & Voia, Marcel & Worswick, Christopher, 2013. "Does adult training benefit Canadian workers?," CLSSRN working papers clsrn_admin-2013-42, Vancouver School of Economics, revised 26 Sep 2013.
    • Handle: RePEc:ubc:clssrn:clsrn_admin-2013-42
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    File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%20124%20-%20Ci,%20Galdo,%20Voia%20&%20Worswick.pdf
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    More about this item

    Keywords

    return to adult training; employer sponsored training; difference-in-differences models; propensity score matching;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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